Transcript Slide 1
Oracle E-Business Suite What’s New in Financials Release 12 Sue Guggenberger Sales Consultant Today’s Quiz What percent of companies have … standard processes across the 35% 55% 75% Adopted a standard chart of accounts across the enterprise? 26% 56% 86% Adopted functional best practices across the enterprise? 12% 32% 52% 7% 17% 27% Implemented enterprise? Rationalized finance platforms? Source: The Agile CFO, IBM Business Consulting Services © 2006 Oracle Corporation – Proprietary and Confidential Finance Performance Suffering from Lack of Standardization HOW FINANCE SPENDS ITS TIME • Nearly 50% on routine work AREAS THAT FINANCE NEEDS TO IMPROVE 26% 47% 27% Transactional Activities Control Activities Decision Support, Performance Mgmt The Agile CFO, IBM Business Consulting Services, 2005 © 2006 Oracle Corporation – Proprietary and Confidential Effectively leveraging technology 91% Helping the company reduce risk 85% Providing management information for decision making 76% Overall cost effectiveness 74% Dealing with complexity 72% Dealing with regulations 71% Corporate Finance Departments Leaving Money on the Table , PWC Management Barometer, 2006 Agenda • What’s on the mind of the CFO? • How can Financials Release 12 help? • Why Upgrade? © 2006 Oracle Corporation – Proprietary and Confidential Today’s CFO Agenda GLOBALIZATION COMPLEXITY AND COSTS …Today’s workforce, customers, suppliers, and competitors have all become global … Globalization brings complexity with it, and unnecessary complexity drives up costs INNOVATION AND GROWTH GOVERNANCE, RISK & COMPLIANCE … Not just any growth, but growth that creates value © 2006 Oracle Corporation – Proprietary and Confidential …Companies are under pressure to do more than just meet the letter of the law Globalization Adds Complexity EXTENT TO WHICH VALUE CREATING ACTIVITIES INCREASE COMPLEXITY Expansion into New Territories M&A 26 New Product Launches 36 Offshoring 34 32 33 23 35 33 Strategic Alliances 23 42 29 77% of global CEOs say the level of complexity in their organizations is higher than 3 years ago 16 36 16 33 Some Extent Business Process Localization 29 39 11 Large Extent Outsourcing 0 20 Percent Source: PWC, 9th Annual Global CEO Survey © 2006 Oracle Corporation – Proprietary and Confidential 10 26 39 40 60 Very Large Extent 80 100 Complexity Drives Up Costs Costs • Fragmented systems • Varied policies, processes, controls, and systems • Manual processes • Consolidated systems • Standard policies, processes, controls and systems • Automated and best practice processes Complexity © 2006 Oracle Corporation – Proprietary and Confidential Back to the Basics Consolidate, Centralize, and Standardize Major Focus STANDARDIZING operating practices and controls 69% 50% STANDARDIZING policies and business rules 66% STANDARDIZING and integrating finance systems 59% Adopting BEST PRACTICES 58% Optimizing the finance organization and its reporting structure 52% Senior executives say simplification is driving the Finance agenda Reducing reliance on spreadsheets 33% Source: PWC Management Barometer © 2006 Oracle Corporation – Proprietary and Confidential <Insert Picture Here> Anthony Salcido VP and Corporate Controller, Toyota Motor Sales USA “We’ve provided corporate assurance from a controllership perspective by centralizing our foundational accounting activities, defining our corporate policies and procedures, and standardizing our processes.” © 2006 Oracle Corporation – Proprietary and Confidential How Oracle Financials Can Help The World’s Most Flexible and Complete Solution GLOBALIZATION COMPLEXITY AND COSTS • Work across applications, • Quickly integrate new divisions and regions • Achieve global view of customer, supplier, partner and operations • Manage global applications easier businesses • Support growth at lower cost • Meet varied reporting standards INNOVATION AND GROWTH GOVERNANCE, RISK & COMPLIANCE • Adapt to business change • Make the right investments • Drive performance © 2006 Oracle Corporation – Proprietary and Confidential • Control costs and risks • Protect your resources • Enforce accountability How Oracle Financials Can Help The World’s Most Flexible and Complete Solution GLOBALIZATION COMPLEXITY AND COSTS • Work across applications, • Quickly integrate new divisions and regions • Achieve global view of customer, supplier, partner and operations • Manage global applications easier businesses • Support growth at lower cost • Meet varied reporting standards INNOVATION AND GROWTH GOVERNANCE, RISK & COMPLIANCE • Adapt to business change • Make the right investments • Drive performance © 2006 Oracle Corporation – Proprietary and Confidential • Control costs and risks • Protect your resources • Enforce accountability How Oracle Financials Can Help The World’s Most Flexible and Complete Solution GLOBALIZATION COMPLEXITY AND COSTS • Work across applications, • Quickly integrate new divisions and regions • Achieve global view of customer, supplier, partner and operations • Manage global applications easier businesses • Support growth at lower cost • Meet varied reporting standards INNOVATION AND GROWTH GOVERNANCE, RISK & COMPLIANCE • Adapt to business change • Make the right investments • Drive performance © 2006 Oracle Corporation – Proprietary and Confidential • Control costs and risks • Protect your resources • Enforce accountability How Oracle Financials Can Help The World’s Most Flexible and Complete Solution GLOBALIZATION COMPLEXITY AND COSTS • Work across applications, • Quickly integrate new divisions and regions • Achieve global view of customer, supplier, partner and operations • Manage global applications easier businesses • Support growth at lower cost • Meet varied reporting standards INNOVATION AND GROWTH GOVERNANCE, RISK & COMPLIANCE • Adapt to business change • Make the right investments • Drive performance © 2006 Oracle Corporation – Proprietary and Confidential • Control costs and risks • Protect your resources • Enforce accountability How Oracle Financials Can Help The World’s Most Flexible and Complete Solution GLOBALIZATION COMPLEXITY AND COSTS • Work across applications, • Quickly integrate new divisions and regions • Achieve global view of customer, supplier, partner and operations • Manage global applications easier businesses • Support growth at lower cost • Meet varied reporting standards INNOVATION AND GROWTH GOVERNANCE, RISK & COMPLIANCE • Adapt to business change • Make the right investments • Drive performance © 2006 Oracle Corporation – Proprietary and Confidential • Control costs and risks • Protect your resources • Enforce accountability Agenda • What’s on the mind of the CFO? • How can Financials Release 12 help? • Why Upgrade? © 2006 Oracle Corporation – Proprietary and Confidential Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. © 2006 Oracle Corporation – Proprietary and Confidential Financials Release 12 The Global Business Release WORK GLOBALLY THINK GLOBALLY MANAGE GLOBALLY To Be More Competitive To Make the Right Decisions To Lower Cost & Increase Performance Work better across applications, divisions, and regions Achieve global view of customer, supplier, partner & operations • Flexible, centralized, global accounting structure • 300+ enhancements to best practice business processes • Comprehensive governance, risk and compliance platform © 2006 Oracle Corporation – Proprietary and Confidential • Truly integrated performance management • Real-time profitability analysis • Unified financial and operational analytic applications Implement, manage, and scale global applications easier • Integration with core industry applications • Self-service report formats and publication • Superior ownership experience <Insert Picture Here> WORK Globally © 2006 Oracle Corporation – Proprietary and Confidential Global Architecture More Control, Greater Flexibility, Lower Costs 3rd Party Systems Dr Cr Legal Entity 3rd Party Systems MULTIPLE LEDGERS General Ledger Centralized Accounting Model, Rules, Engine and Repository Banking Intercompany Accounting Global Tax E-Business Suite Inventory Receivables Purchasing Payables © 2006 Oracle Corporation – Proprietary and Confidential Projects Work in Process 1 2 Centralized Architecture 2.1 LEGAL ENTITY 2.2 ACCOUNTING 2.3 BANK MODEL 2.4 TAX ENGINE 2.5 INTERCOMPANY 3 ROLE BASED ACCESS to Operating Units Multiple Ledgers 1 More Efficient Period-end Processing Must Share: Chart of Accounts Calendar Ledger Set Ledger C Ledger B Ledger A French Rules Plan Comptable French Calendar US GAAP US COA US Calendar EUR EUR US GAAP US COA US Calendar Defined by 4 C’s: USD • Accounting Convention Ledger D • Chart of Accounts • Calendar US GAAP • Currency US COA US Calendar GBP Ledger Set Benefits: • Cross/Multiple Ledger processing and reporting • Data and definitions that can be shared and secured • Native support for multiple accounting representations © 2006 Oracle Corporation – Proprietary and Confidential Reporting Currency Get the Legal Entity Right 2.1 Compliance falls into place LE’s in Release 12 Why We Care • LEs pay the taxes • Need tax registrations • Trade between LEs • Need intercompany • Tax • Registered companies calculate, file, and pay the transaction taxes they owe • Intercompany • Do business between and across your registered companies with full legal documentation • LEs own the money and bank accounts • Bank Model • LEs file the accounts • Accounting • Takes care of accounting © 2006 Oracle Corporation – Proprietary and Confidential • Registered companies use their money to pay their bills, etc. • Assign books, bookkeeping rules and currency management to your registered companies Centralized Legal Entity Management Easier Compliance for Complex Structures Registered Company Requirements Public Company Subsidiary Public Company Company (regional parent) Subsidiary Company Subsidiary Company (business parent) Subsidiary Company Subsidiary Company Subsidiary Company Subsidiary Company Legal entities (parent and subsidiary) “Group” structure © 2006 Oracle Corporation – Proprietary and Confidential ACCOUNTING • Manage books, bookkeeping rules and currencies TAX • Calculate, file, and pay transaction taxes INTERCOMPANY • Legally document business transactions between registered companies BANK MODEL • Segregate money between registered companies to pay bills, etc. 2.1 Centralized Accounting Policies 2.2 Greater Control, Transparency and Auditability 3rd Party Systems Dr Cr Legal Entity 3rd Party Systems • Internal control and compliance with multiple accounting policies through user-defined accounting rules General Ledger • Single source of truth for all subsystem accounting activity with a common data model and repository Centralized Accounting Model, Rules, Engine and Repository Banking Global Tax Intercompany Accounting E-Business Suite Inventory Purchasing Receivables Projects Payables Work in Process © 2006 Oracle Corporation – Proprietary and Confidential • Accounting, reconciliation and reporting facilitated by centralized data model • Streamline closing process with common posting engine • Auditable and transparent entries accessible with full drilldown Multiple Accounting Representations Parallel Financial Reporting Ledger B Ledger A French Rules Plan Comptable French Calendar US GAAP US COA US Calendar EUR EUR Dr Cr Centralized Accounting Payables Invoice © 2006 Oracle Corporation – Proprietary and Confidential Single business transaction can create multiple accounting representations and in multiple currencies 1 + 2.2 Centralized Banking and Payments 2.3 Funds Disbursements and Capture • Bank account is now associated with LE entity rather than Operating Unit LE OU A OU B OU C • Single bank account serves multiple Operating Units • Any and all Operating Units associated with a ledger can be permitted to use the bank account Inventory Receivables Work in Process Purchasing Payables E-Business Suite © 2006 Oracle Corporation – Proprietary and Confidential Projects Assets Plus Centralized Credit Card Model Credit Card Encryption Supplier & Customer Banks in TCA Example: Shared Service Disbursement OU A OU B Centralized Accounting Single Payment Instruction OU C Invoices © 2006 Oracle Corporation – Proprietary and Confidential Bank Payments 1. Setup accounting policies 2. 3. Select invoices from multiple OUs Format for bank and disbursement countries Send single instruction to bank Generate separate payments for each OU 4. 5. 2.4 Centralized Global Tax Less Complex Global Tax Compliance Benefits Solution • Automated processing based on predefined tax rules Operational Efficiency • Simplified tax configuration (shared across legal entities and Oracle apps) • Standard services to all eBusiness applications • Integration with external tax vendors (Taxware and Vertex in the U.S.) Global Management, Local Compliance • Single data model for rules and transactions across geographies and applications • Centralized tax repository provides global visibility • Self-Service for Tax Managers • Tax reporting ledger provides single source of the truth and complete auditability Information Visibility • Configurable tax reporting templates • Tax simulator for setup, rules, and transactions © 2006 Oracle Corporation – Proprietary and Confidential Oracle eBusiness Tax Processing taxes for transactions and reporting Transactions Purchasing Parties Compliance, Assurance Efficiency, Global Visibility Single Interface for Transactions Payables Places Products Sales Orders Processes Determine Applicable Regimes Taxes Tax Status & Rate Taxable Basis Transparent Integration with Tax Partner Services Extensible Service Oriented Architecture Receivables … Tax Reports - PDF, HTML, RTF - Security enabled © 2006 Oracle Corporation – Proprietary and Confidential Calculate Tax Amount Tax Transactions Taxes, Rules Centralized Intercompany 2.5 Faster Period-End Close Advanced Global Intercompany System Subledger Invoices & Documents Manual Entry Open Interfaces / API Generate subledger invoices Excel (Web ADI) Fully Configurable Approval Rules Control transaction entry with Intercompany Calendar Online Reconciliation Reporting Centrally defined Intercompany Accounts XML Publisher Reports Transaction-level balancing Dr General Ledger © 2006 Oracle Corporation – Proprietary and Confidential Cr Subledger Accounting Receivables Payables 3 Role-Based Access More Productive Shared Services Operations Perform multiple tasks across operating units without changing responsibilities Belgium Holland Denmark Legal Entity Legal Entity Legal Entity Belgium Holland Denmark Operating Unit Operating Unit Operating Unit Responsibility SingleResponsibility ResponsibilityResponsibility © 2006 Oracle Corporation – Proprietary and Confidential Functional Tasks Accounting Billing, Dunning & Collections Procurement Order Management Payments Data Management <Insert Picture Here> Governance, Risk and Compliance © 2006 Oracle Corporation – Proprietary and Confidential Global Compliance and Reporting* Integrated Financial Reporting & Compliance Mgmt New in FCH • Monitor consolidation process Financial Consolidation Hub and certification status • Drill-back to certification status in ICM • Spreadsheet drill-back to source transactions • Dynamic spreadsheet-based statutory and mgmt reporting New in GRC • Compliant access provisioning • Continuous monitoring of profile options • Monitoring of application controls at supplier sites • Online and report history of application control changes * Available Pre-R12 © 2006 Oracle Corporation – Proprietary and Confidential Governance, Risk & Compliance Global Visibility and Integration Financial Consolidation Hub Oracle EBS Data Transformation & Validation One-Touch Consolidation Results Auditing PeopleSoft E JD Edwards E1 Operating Balances Financial Consolidation Report Generation SAP Legacy Apps Multi-Dimensional Analysis Compliance Certification © 2006 Oracle Corporation – Proprietary and Confidential Financial Consolidation Hub Spreadsheet Reporting with Live Drill Interactive spreadsheet with live drill to transactions © 2006 Oracle Corporation – Proprietary and Confidential Oracle Governance, Risk, and Compliance Insight Processes Risk & Compliance Mgmt Policy Mgmt Controls Management Industry Specific Risk & Control Intelligence Applications Oracle SAP Custom Legacy Other Infrastructure Services Operational Intelligence Content Mgmt Identity Mgmt Change Mgmt Data Security Data Audit Repository © 2006 Oracle Corporation – Proprietary and Confidential Performance Management Oracle Governance, Risk, and Compliance Best-in-Class Infrastructure Automates Enforcement Insight Processes Risk & Compliance Mgmt Policy Mgmt Controls Management Industry Specific Risk & Control Intelligence Applications Oracle SAP Custom Legacy Operational Intelligence Change Mgmt Data Security Data Audit Repository © 2006 Oracle Corporation – Proprietary and Confidential assets across the entire technology stack • Enforce best-practice Content Mgmt Identity Mgmt reliability with content security, records retention, and identity management • Protect information Other Infrastructure Services • Ensure information Performance Management segregation of duties, configuration and change management procedures Oracle Governance, Risk, and Compliance Comprehensive Applications Control Costs and Risks Insight Processes Risk & Compliance Mgmt Policy Mgmt Controls Management Industry Specific Risk & Control Intelligence Applications Oracle SAP Custom Legacy Other Infrastructure Services Operational Intelligence Content Mgmt Identity Mgmt Change Mgmt Data Security Data Audit Repository © 2006 Oracle Corporation – Proprietary and Confidential Performance Management • Standardize on best-practice frameworks to meet evolving GRC demands • Automate key GRC processes for risk assessment, control design, policy creation, hotline intake, control monitoring and case management • Streamline specialized GRC processes for highly-regulated and risk-sensitive industries Oracle Governance, Risk, and Compliance Integrated Business Insight Ensures Accountability Insight Processes Risk & Compliance Mgmt Policy Mgmt Controls Management Industry Specific Risk & Control Intelligence Applications Oracle SAP Custom Legacy Operational Intelligence Content Mgmt Identity Mgmt Data Audit Repository © 2006 Oracle Corporation – Proprietary and Confidential and business process control with auditor-ready reporting • Optimize business Change Mgmt Data Security with timely compliance, risk, and performance management info • Provide evidence of IT Other Infrastructure Services • Improve governance Performance Management performance through risk-aware strategic planning <Insert Picture Here> THINK Globally © 2006 Oracle Corporation – Proprietary and Confidential Truly Integrated CPM Applications Executives Managers Work Think Manage Analysts • Make timely decisions Users Reporting with integrated information systems Planning Consolidation & Compliance Profitability Analysis Forecasting & Modeling Portfolio Analysis Operational Reporting Performance Scorecards Network Optimization Inventory Optimization Transaction Processing Financials, Supply Chain, Projects, PLM, Sales & Marketing, HR, Service © 2006 Oracle Corporation – Proprietary and Confidential Sensor Based Services • Target information delivery with rolebased dashboards • Protect organizational integrity with secure information delivery Oracle BI Foundation Comprehensive Hot Pluggable Pervasive • Integrated BI platform & broad range of BI applications • Powerful OLAP, “Speed of thought” response • Broadest spectrum of BI functionality • Heterogeneous ERP, CRM, DW, & OLTP systems • Heterogeneous database technologies • Heterogeneous middleware, ETL, & BI tools • User self-service with superior tools • Multi-channel information access & delivery • Consistent, accurate information from Common Enterprise Information Model © 2006 Oracle Corporation – Proprietary and Confidential The Best of Both Worlds Hyperion Advanced BI Server Best In Class PM Applications Enterprise Information Model Flexible Information Access Comprehensive BI Applications Market Leading OLAP © 2006 Oracle Corporation – Proprietary and Confidential Oracle Integrated, Open, Best of Breed Hyperion Best In Class PM Applications Advanced BI Server Advanced BI Server Best In Class FPM Applications Enterprise Information Enterprise Information Model Model Flexible Information Flexible Information Access Access Comprehensive BI Comprehensive BI Applications Applications Market Leading OLAPMarket Leading OLAP © 2006 Oracle Corporation – Proprietary and Confidential Oracle <Insert Picture Here> MANAGE Globally © 2006 Oracle Corporation – Proprietary and Confidential Work Think Manage Comprehensive Integration Repository A Catalog of All EBS Integration Points • Web Services • Public Java & PL/SQL APIs • Business Events • Batch Interfaces • Enable key integration types - Business to Business Enterprise Application Integration Business Process Management Business Activity Monitoring • Support industry-standard messages • Support standards-based XML documents • Search and view available interfaces via powerful UI • Automatically keep in step with source code via standard patching © 2006 Oracle Corporation – Proprietary and Confidential Work Think Manage Comprehensive Integration Repository A Catalog of All EBS Integration Points • Web Services • Public Java & PL/SQL APIs • Business Events • Batch Interfaces • Enable key integration types - Business to Business Enterprise Application Integration Business Process Management Business Activity Monitoring • Support industry-standard messages • Support standards-based XML documents • Search and view available interfaces via powerful UI • Automatically keep in step with source code via standard patching © 2006 Oracle Corporation – Proprietary and Confidential Integration with Core Applications Work Think Manage Oracle | Retek Integration with BPEL • Lower cost integration between disparate systems • Better performance with integrated business flows across applications Merchandising Sales Audit Stock Ledger Inbound Retek Data • Matched invoices • Credit notes • Debit memos • Rebates • • • • Daily sales Cash and deposits Inventory Sales data Outbound Financials Data • Suppliers • Partners • Addresses • Freight terms © 2006 Oracle Corporation – Proprietary and Confidential • Payment terms • GL accounts • Currency rates General Ledger Accounts Receivable Cash Management E-Business Financials Invoice Matching Accounts Payable Data Management Work Think Manage Leveraging centralized data model Payables Purchasing Suppliers Payments Global Tax Authorities, Geographies, etc. Party Information Cash Management Banks and Branches Trading Community Architecture Oracle Fusion Middleware ERP © 2006 Oracle Corporation – Proprietary and Confidential CRM 3rd Party Self-Service Reporting Work Think Manage XML Publisher Reporting Evolution • Replaces most standard reports with data extracts and templates • Merges custom templates and data extracts at run-time • Delivers output in PDF, HTML, RTF, Excel (HTML), or text for use with EFT and EDI transmissions Benefits • Put reporting in the hands of the business user • Create report formats using desktop tools (Adobe Acrobat, MS Word, MS Excel, and XSL Editors) • Publish in any format, to the web and electronically • Drive reporting consistency with one source of data “Oracle’s new XML Publisher is visionary and empowers end users. This new capability gives customers the look and feel of Excel with a desktop publishing look to reports, and enables users to create their own reports, minimizing the dependency on the IT staff.” -- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice © 2006 Oracle Corporation – Proprietary and Confidential Superior Ownership Experience Work Think Manage 11i User Experience • Define/Assign Set of Books, Specify Conversion options/rules Defining a set of books takes 5 tabs to accommodate all fields and rules Multiple steps required to assign sets of books and specify conversion options/rules © 2006 Oracle Corporation – Proprietary and Confidential Superior Ownership Experience Work Think Manage Single Page for Accounting Setup •Legal Entities •Ledgers •Currencies •Balancing Segments •Subledger Accounting •Operating Units •Balancing Options © 2006 Oracle Corporation – Proprietary and Confidential Superior Ownership Experience Work Think Manage Better Upgrades Continuity and Choice Uptake new features at your pace Run your business the Minimize manual work same way Testing – More customer database upgrades; more dependency analysis and management Upgrade Process – Fewer pre- and post-upgrade steps Documentation – More comprehensive functional upgrade impact; improved sizing guidelines; downtime reduction techniques “Many clients are evaluating whether to upgrade from Oracle E-Business Suite 11i to Release 12 or wait for the larger Fusion release. There are significant application and architecture changes in Release 12. Upgrading now will help build the foundation to prepare for Fusion—maximizing business value while mitigating risk.” -- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice © 2006 Oracle Corporation – Proprietary and Confidential Enhanced Industry Support Manufacturing • Regulatory compliance for clinical trials and 21 CFR Part II Asset Intensive Service • Common asset • Financials and repository Retek • Enhanced fleet Merchandising integration asset management • Financial Services • Support for 21 Accounting CFR Part II Hub • Enhanced budgeting and forecasting © 2006 Oracle Corporation – Proprietary and Confidential Public Services • Centralized and configurable budgetary control and accounting • Enhanced shared services Agenda • What’s on the mind of the CFO? • How can Financials Release 12 help? • Why Upgrade? © 2006 Oracle Corporation – Proprietary and Confidential Why Upgrade Straight Talk from Customers “We have 60 sets of books and see tremendous efficiencies with running processes across these sets of books using Ledger Sets.” “Ability to issue one payment instruction to the bank for payments of invoices in multiple operating units was viewed as a huge benefit from the user community.” “Multi-Org Access Control (MOAC) will definitely reduce the workload and the number of people performing process related tasks. The users are very excited and the benefits of MOAC were readily visible to them.” “The ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring.” “The functionality offered with Advanced Global Intercompany System (AGIS), specifically the creation of physical invoices to be created for I/C transactions in Payables and Receivables eliminates many customizations in this area.” “Centralization of subledger accounting rules would minimize set up and maintenance, providing greater financial control, and enforcing a consistent approach for true global accounting.” “Banks, taxes, payments, and accounting – everything that becomes centralized will bring tremendous efficiencies to our organization.” © 2006 Oracle Corporation – Proprietary and Confidential Why Upgrade Straight Talk from Partners “The new financials architecture will enable our joint clients to work globally to be more competitive, think globally to make the right decisions, and manage globally to lower cost and increase performance.” -- Brian A. Mitchell, IBM Global Business Services Worldwide and Americas Oracle Practice Lead Executive “Oracle continues to invest in a better user experience in E-Business Suite Financials Release 12—from centralized accounting, tax and supplier maintenance to a new user interface.” -- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice “IBM found the Oracle E-Business Suite Release12 to be rich in the functionality that our clients need to succeed in today's business world.” -- Brian A. Mitchell, IBM Global Business Services Worldwide and Americas Oracle Practice Lead Executive © 2006 Oracle Corporation – Proprietary and Confidential Why Upgrade Straight Talk from Partners “The new financials architecture will enable our joint clients to work globally to be more competitive, think globally to make the right decisions, and manage globally to lower cost and increase performance.” -- Brian A. Mitchell, IBM Global Business Services Worldwide and Americas Oracle Practice Lead Executive “Oracle continues to invest in a better user experience in E-Business Suite Financials Release 12—from centralized accounting, tax and supplier maintenance to a new user interface.” -- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice “IBM found the Oracle E-Business Suite Release12 to be rich in the functionality that our clients need to succeed in today's business world.” -- Brian A. Mitchell, IBM Global Business Services Worldwide and Americas Oracle Practice Lead Executive © 2006 Oracle Corporation – Proprietary and Confidential Why Upgrade Straight Talk from Partners “The new financials architecture will enable our joint clients to work globally to be more competitive, think globally to make the right decisions, and manage globally to lower cost and increase performance.” -- Brian A. Mitchell, IBM Global Business Services Worldwide and Americas Oracle Practice Lead Executive “Oracle continues to invest in a better user experience in E-Business Suite Financials Release 12—from centralized accounting, tax and supplier maintenance to a new user interface.” -- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice “IBM found the Oracle E-Business Suite Release12 to be rich in the functionality that our clients need to succeed in today's business world.” -- Brian A. Mitchell, IBM Global Business Services Worldwide and Americas Oracle Practice Lead Executive © 2006 Oracle Corporation – Proprietary and Confidential Why Upgrade Straight Talk from Partners “The new financials architecture will enable our joint clients to work globally to be more competitive, think globally to make the right decisions, and manage globally to lower cost and increase performance.” -- Brian A. Mitchell, IBM Global Business Services Worldwide and Americas Oracle Practice Lead Executive “Oracle continues to invest in a better user experience in E-Business Suite Financials Release 12—from centralized accounting, tax and supplier maintenance to a new user interface.” -- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice “IBM found the Oracle E-Business Suite Release12 to be rich in the functionality that our clients need to succeed in today's business world.” -- Brian A. Mitchell, IBM Global Business Services Worldwide and Americas Oracle Practice Lead Executive © 2006 Oracle Corporation – Proprietary and Confidential Why Upgrade Multinational Customers Manage complexity at lower cost Comply with international regulations and standards Reduce upgrade risk © 2006 Oracle Corporation – Proprietary and Confidential Why Upgrade Domestic Customers Lower TCO Improve user experience Reduce upgrade risk © 2006 Oracle Corporation – Proprietary and Confidential Financials Release 12 The Global Business Release WORK GLOBALLY THINK GLOBALLY MANAGE GLOBALLY To Be More Competitive To Make the Right Decisions To Lower Cost & Increase Performance Work better across applications, divisions, and regions Achieve global view of customer, supplier, partner & operations • Flexible, centralized, global accounting structure • 300+ enhancements to best practice business processes • Comprehensive governance, risk and compliance platform © 2006 Oracle Corporation – Proprietary and Confidential • Truly integrated performance management • Real-time profitability analysis • Unified financial and operational analytic applications Implement, manage, and scale global applications easier • Integration with core industry applications • Self-service report formats and publication • Superior ownership experience Overall Business Benefits • Faster, simpler period end processing • Centralized and standardized key business functions • More productive shared services operations © 2006 Oracle Corporation – Proprietary and Confidential <Insert Picture Here> Appendix: 300+ New Features © 2006 Oracle Corporation – Proprietary and Confidential New in Financial Control & Reporting Highly automated financials processing drives efficiencies • Centralized accounting setup • Streamlined multiple ledger processing and reporting • Parallel financial reporting • Automatic reporting currency conversion EFFICIENCY • Replacement for disabled accounts • Data security across legal entities, ledgers or balancing segment values • Control Accounts FLEXIBILITY • Accounting and reporting sequencing • Journal line reconciliation AUDITABILITY © 2006 Oracle Corporation – Proprietary and Confidential New in Procure-to-Pay Integrated Suite Optimizes Working Capital • Document line level entry and approval • Non-PO invoice accounting entry by approvers • Invoice dispute management PRODUCTIVITY • Real-time status of purchasing contract T&Cs and invoicing activity in Oracle Payables and Purchasing • Self-service opportunities via iSupplier Portal to a broader set of their suppliers • Self service entry extended to receipt matched, complex Work Purchase Orders, and non-PO invoices COST SAVINGS • Streamlined supplier setup and maintenance as part of Trading Community Architecture (TCA) • Access to TCA features © 2006 Oracle Corporation – Proprietary and Confidential INTEGRATION New in Credit-to-Cash Accelerate cash cycle and manage revenue with fiscal discipline • • • • Daily revenue recognition Deferral reason for goods and services COGS and revenue matching Line level cash application COMPLIANCE • More efficient payment application with Oracle Payments integration • More targeted and efficient collections with configurable matrix • Credit recommendation enhancements • Conversion of delinquent receivables to payment plans BETTER CASH FLOW • Visibility to carry-forward balances with cycle-based billing • Payment application according to customer preferences © 2006 Oracle Corporation – Proprietary and Confidential INDUSTRY SUPPORT New in Cash and Treasury Optimize Cash and Treasury Operations • Centralized and consolidated bank model • Single bank account shared by multiple organizations • Bank account transfers directly in Cash Management EFFICIENCY • Funds optimization with cash pooling and zero balancing • Configurable and centralized payments engine • Full audit trail and control with single point of payment administration • Straight through processing (STP) for payments • Real-time visibility into cash inflows and outflows • Large library of payment formats and validations COMPLEXITY • Simplified reconciliation of bank statements to cash transactions in multiple organizations • Support for new bank account balance types in bank statement import • Bank account-level reconciliation options and tolerances © 2006 Oracle Corporation – Proprietary and Confidential FLEXIBILITY New in Asset Management Maximize return on assets • Automate legacy asset conversion with enhanced preparation of Mass Additions • Perform rollback on select assets with Automatic Depreciation Rollback EFFICIENCY PERFORMANCE • Group Assets to include “Units of Production” method • Energy straight-line depreciation method • Asset impairment of a producing asset © 2006 Oracle Corporation – Proprietary and Confidential INDUSTRY SUPPORT New in Travel & Expense Lower the total cost of travel and expense • CONUS and OCONUS global per diem rates LOWER COSTS • Per diem and policy schedules • Expense splitting across multiple accounting segments • Enhanced cost center and projects approvals ACCURACY • Self-service cash advance application during entry • Bar code generation • Streamlined receipts management with receipts tracking and receipts missing capabilities © 2006 Oracle Corporation – Proprietary and Confidential PRODUCTIVITY